Bitcoin slipped below $32,000 on Monday and is dangerously close to breaching the $32.5k level amid a huge selloff in the cryptocurrency and equities.
Bulls are staring at price levels seen in July 2021, with the price of BTC/USD down more than 7% over the past 24 hours, with on-chain data indicating more pain.
BTC price slip sends 10% supply into unprofitable territory
As crypto sells along with stocks, more BTC has been at a loss. Price volatility below $33k has put an additional 10% of bitcoin supply in the red, according to on-chain analysis platform Glassnode.
Last week Glassnode highlighted how a drop to as low as $33k would push more people, especially short-term investors, into the unprofitable.
Bitcoin was around $38k by then, but the fall seen over the past few days has shaken a large pool of short-term holder groups, even as the broader risk-averse market is in more pain to sell shares. Sold for viewing.
,Bitcoin bulls remain under pressure this week, as price drops to $33.8k, network profitability down ~10%. Weakness has appeared in ETF product flows, stablecoin supply contraction, and investors’ urgency to deposit coins on exchanges, primarily in response to downside volatility.“The firm wrote in its weekly News bulletin,
more likely to be in pain
Bitcoin is now up over 53% from its all-time high of $69k in November. According to Glassnode, if the current decline is compared to the previous bear markets, there could be more pain right now.
First, the downturn seen in July 2021 sent BTC from its ATH price level of 54.2%. The bear markets that occurred in 2015, 2018 and March 2020 were even more painful, with capitulation sending bitcoin -77.2% and -85.5% from its all-time highs.
The network’s profitability has plummeted to nearly 60% with the latest drop in BTC price, pushing the leading cryptocurrency to a ‘pain threshold’ similar to previous bear markets. Profitability levels are also similar to those recorded in the bear markets of 2018 and 2019-20.
,However it should be noted that both the examples were before the last surrender flush out event.The firm’s analysts added to the report.
Crypto trader and analyst Hornhair believes the bottom is not there yet and more pain is likely.
,Given the average time from the cycle high to the cycle low, as well as the average cycle low before the next halving, this year’s September–November time period is the most historically similar to previous cycles. Will be form from below,
Chart showing historical price movement for BTC. Source: hornhair on twitter,
According to Michael van de Popp, a full-time trader and top crypto analyst, investors may want to watch the current price levels for BTC. In his view, the field can provide “bounce play.”
#bitcoin Should be interesting to watch at this stage.
Did not bounce towards $37.5K but is taking all liquidity down from 2022 lows and it should be a bullish game. pic.twitter.com/GMsToZTZMN
— Michael van de Pope (@CryptoMichNL) 9 May 2022
Bitcoin traded around $31,580 on Monday afternoon, down about 7.5% over the past 24 hours.